Chemicals business Croda 'hits bullseye' with £232m strategic acquisition

Solus Biotech has more than 30 years' experience in biotechnology and fermentation. The business generated approximately £28m of sales in 2022 and employs 95 people in South Korea at its R&D centre in Bundag near Seoul and its production centre in Iksan.

In a statement, Croda, which is based in Snaith, East Yorkshire, said: “The acquisition provides access to Solus' existing biotech-derived ceramide and phospholipid technologies, and its emerging capabilities in natural retinol.”

“This acquisition will significantly strengthen Croda's beauty actives portfolio and increases its exposure to targeted prestige segments.” Located in South Korea, Solus expands Croda's Asian manufacturing capability and will create a new biotechnology research and development hub in the region.”

The statement added: “Solus is a leading supplier of naturally derived powder ceramides, a high-growth global market with further potential to extend into formulated ceramides.

"The number of new personal care products containing ceramides has doubled over the last five years, principally for skin care but increasingly for hair care formulations.

"Access to Croda's formulation capabilities will accelerate development of Solus' formulated ceramides to create even greater value for our customers globally and address exciting, formulated ceramide demand.

The statement added: “Solus' growth will be accelerated by Croda's ownership through access to our technical and innovation capabilities, particularly in formulation, and by accessing our global selling network. The acquisition will give Croda greater ability to serve luxury beauty customers in Asia and globally, and the opportunity to accelerate delivery of Avanti's pharma product pipeline.”

Commenting on the acquisition, Steve Foots, the chief executive of Croda, said: "This is a strategic bullseye for Croda, consolidating our position as a global leader in supplying sustainable, natural actives for personal care across three critical technology platforms of peptides, ceramides and retinol.

"It significantly enhances our sustainable biotechnology capabilities and adds a North Asia manufacturing and innovation facility, providing a springboard to premium markets in Asia and beyond.

Mr Foots added: "I am especially excited about their brilliant technology, with Solus bringing rich IP (intellectual property) and proprietary know-how that we will be able to deliver to customers globally."

The acquisition is subject to regulatory approval, Croda said in its statement. Croda will report its financial results for 2022 on February 28 2023.

Croda, which was founded in 1925, employs around 5,500 people who work at manufacturing sites and offices in 37 countries.